Booz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company
of management and technology consulting firm Booz Allen Hamilton Inc.,
today announced preliminary results for the third quarter of fiscal 2013
with solid adjusted earnings growth over the prior year period. Booz
Allen also reported total backlog of $12.92 billion as of December 31,
2012. Booz Allen’s fiscal year runs from April 1 to March 31, with the
third quarter of fiscal 2013 ending December 31, 2012.

Revenue in the third quarter of fiscal 2013 was $1.39 billion, compared
with $1.44 billion in the prior year period, a decrease of 3.5 percent.
The decline in revenue resulted from lower demand due to market forces.
This led to a reduction in headcount and a related reduction in billable
hours, which contributed to a decline in our direct labor. Additionally,
the Company has a large portfolio of cost-reimbursable contracts, which
generate revenue on both direct labor and indirect costs. Our continued
focus on minimizing non-billable work and effectively managing our
non-billable costs has contributed to lower indirect costs and a
corresponding reduction in revenue on these cost-reimbursable contracts.

In the third quarter of fiscal 2013, Adjusted Net Income increased to
$59.7 million from $56.4 million in the prior year period. This resulted
from an increase in Adjusted Operating Income, which was partially
offset by an increase in interest expense attributable to the July 2012
debt refinancing transaction associated with the special dividend paid
in August 2012. Net income for the current quarter decreased to $56.2
million from $62.9 million in the prior year period. This decrease was
attributable to the higher interest expense in the current quarter and
the release of a significant income tax reserve in the prior year
period, and was partially offset by an increase in operating income.
Adjusted Diluted Earnings per Share was $0.41 for the current quarter,
compared with $0.40 in the prior year period. Diluted earnings per share
for the third quarter of fiscal 2013 was $0.38, compared with $0.44 in
the prior year period.

The Company authorized and declared a regular quarterly cash dividend of
$0.09 per share, payable on February 28, 2013, to stockholders of record
on February 11, 2013.

Ralph W. Shrader, Booz Allen’s Chairman, Chief Executive Officer, and
President, said “We continued to grow adjusted earnings and maintained
solid margins despite the challenging market conditions for government
contractors. We will pay our fifth regular quarterly dividend next
month, and we continue to deliver a total return to our shareholders
that is among the top in the government services sector.

“We are focused on the things we can control in this uncertain federal
budget environment – and there are many. We can control the quality of
work we do for our clients, the attention we pay to contractual
requirements and deliverables, and the ethics and integrity with which
we do business. We can reduce costs, manage our operations with agility
and precision, and keep a strong balance sheet, income statement, and
cash flow so we have financial flexibility. At every level in our
Company, we are making changes to ensure our cost competitiveness to win
and perform work in the current business environment – including recent
major wins from the US Navy, Air Force, Environmental Protection Agency,
and Department of Justice. In this way, we deliver value to clients and
maintain quality jobs for our people,” Dr. Shrader said.

“We are shaping our destiny by continuing to invest in growth areas such
as cyber, cloud, and health, in our emerging commercial and
international markets, and in new capabilities such as predictive
intelligence and rapid prototyping. Booz Allen is also continuing to
expand in promising engineering areas, which includes making strategic
acquisitions such as our purchase of the Defense Systems Engineering and
Support (DSES) division of ARINC Incorporated, which closed on November
30, 2012. By investing in the future and building on our track record of
prudent management, cash generation, and capital deployment, we believe
Booz Allen will continue to deliver high value to our shareholders,” Dr.
Shrader said.

Financial Review

Third Quarter Fiscal 2013 – Below is a summary of Booz
Allen’s results for the fiscal 2013 third quarter and the key factors
driving those results:

Booz Allen’s 3.5 percent decrease in revenue in the third quarter of
fiscal 2013 compared with the prior year period resulted from lower
demand due to market forces leading to a reduction in headcount and a
related reduction in billable hours which contributed to a decline in
our direct labor. Additionally, the Company has a large portfolio of
cost-reimbursable contracts, and our continued focus on minimizing
non-billable work and effectively managing our non-billable costs has
contributed to lower indirect costs and a corresponding reduction in
revenue on these cost-reimbursable contracts.

In the third quarter of fiscal 2013, Adjusted Operating Income
increased to $120.8 million from $104.7 million in the prior year
period, and operating income increased to $116.6 million from $98.2
million in the prior year period. The improvement in Adjusted
Operating Income and operating income were driven by ongoing
improvements in the deployment of Booz Allen’s consulting staff and
disciplined management of the Company’s indirect costs which has led
to higher margins on our fixed-price and time-and-materials contracts
with no material impact to margins on our cost-reimbursable contracts.

In the third quarter of fiscal 2013, Adjusted Net Income increased to
$59.7 million from $56.4 million in the prior year period and net
income decreased to $56.2 million from $62.9 million in the prior year
period. Adjusted EBITDA increased 13.1 percent to $135.8 million in
the third quarter of fiscal 2013, compared with $120.1 million in the
prior year period. In the third quarter of fiscal 2013, Adjusted
Diluted EPS increased to $0.41 from $0.40 in the prior year period;
diluted EPS decreased to $0.38 from $0.44 in the prior year period.

These
metrics were positively impacted by the same factors as Adjusted
Operating Income and operating income offset by an increase in income
taxes, interest, and other expenses for the quarter ended December 31,
2012 as compared to the prior year period. Adjusted Diluted EPS and
diluted EPS for the third quarter of fiscal 2013 reflect a decrease on
the order of $0.04 per share attributable to higher interest expense
associated with the July 2012 debt refinancing transaction.

Earnings in the prior year period reflected a substantial increase
attributable to the release of a significant income tax reserve in the
quarter ended December 31, 2011. There were no substantial one-time
costs or increases to earnings in the quarter ended December 31, 2012.
Adjusted Net Income, Adjusted EBITDA, and Adjusted Diluted Earnings
per Share remove these one-time and unusual items.

Booz Allen’s total backlog as of December 31, 2012, was $12.92 billion,
which included $11.39 billion from Booz Allen and $1.53 billion from our
acquisition of the Defense Systems Engineering and Support (DSES)
division of ARINC Incorporated, compared with $12.22 billion as of
December 31, 2011. Booz Allen’s funded backlog as of December 31, 2012
was $3.15 billion, which included $2.90 billion from Booz Allen and
$247.3 million from DSES, compared with $2.97 billion as of December 31,
2011.

Acquisition of ARINC’s Defense Systems Engineering and Support
Division (DSES)

On November 30, 2012, Booz Allen paid $155.1 million from available cash
on hand to acquire the DSES division of ARINC Incorporated.
Approximately 900 employees from various locations of ARINC
Incorporated, many of which align with Booz Allen’s existing locations,
joined Booz Allen as a result of the acquisition. While accretion to
earnings in the current fiscal year will be mostly offset by transaction
and integration expenses, Booz Allen expects the transaction to be
accretive to its earnings in fiscal 2014, which begins April 1, 2013.

Financial Outlook

Based on a continuation of current macro-economic trends and assuming no
impact from sequestration, we expect revenue to decline by a low single
digit percentage for Booz Allen’s fiscal 2013, as compared with the
prior fiscal year. At the bottom line, we are narrowing our previous
guidance and are forecasting diluted EPS to be in the range of $1.40 to
$1.45, and Adjusted Diluted EPS on the order of $1.60 to $1.65 per
share. Our guidance, both at the top and bottom line, is inclusive of
DSES.

These EPS estimates are based on fiscal year 2013 estimated average
diluted shares outstanding of approximately 145.0 million shares.

Conference Call Information

Booz Allen will host a conference call at 8 a.m. EST on Wednesday,
January 30, 2013, to discuss the financial results for its Third Quarter
of Fiscal Year 2013 (ending December 31, 2012). Analysts and
institutional investors may participate on the call by dialing (877)
375-9141 (International: (253) 237-1151). The conference call will be
webcast simultaneously to the public through a link on the investor
relations section of the Booz Allen Hamilton web site at www.boozallen.com.
A replay of the conference call will be available online at www.boozallen.com
beginning at 10:30 a.m. EDT on January 30, 2013, and continuing through
March 1, 2013. The replay will also be available by telephone at (855)
859-2056 (International: (404) 537-3406). Use Conference ID 82456436 to
access the replay.

About Booz Allen Hamilton

Booz Allen Hamilton is a leading provider of management and technology
consulting services to the U.S. government in defense, intelligence, and
civil markets, and to major corporations, institutions, and
not-for-profit organizations. Booz Allen is headquartered in McLean,
Virginia, employs approximately 25,000 people, and had revenue of $5.86
billion for the 12 months ended March 31, 2012.

Non-GAAP Financial Information

“Adjusted Operating Income” represents Operating Income before (i)
certain stock option-based and other equity-based compensation expenses,
(ii) adjustments related to the amortization of intangible assets, and
(iii) any extraordinary, unusual, or non-recurring items. Booz Allen
prepares Adjusted Operating Income to eliminate the impact of items it
does not consider indicative of ongoing operating performance due to
their inherent unusual, extraordinary or non-recurring nature or because
they result from an event of a similar nature.

“Adjusted EBITDA” represents net income before income taxes, net
interest and other expense and depreciation and amortization and before
certain other items, including: (i) certain stock option-based and other
equity-based compensation expenses, (ii) transaction costs, fees,
losses, and expenses, including fees associated with debt prepayments,
and (iii) any extraordinary, unusual or non-recurring items. Booz Allen
prepares Adjusted EBITDA to eliminate the impact of items it does not
consider indicative of ongoing operating performance due to their
inherent unusual, extraordinary or non-recurring nature or because they
result from an event of a similar nature.

“Adjusted Net Income” represents net income before: (i) certain stock
option-based and other equity-based compensation expenses, (ii)
transaction costs, fees, losses, and expenses, including fees associated
with debt prepayments, (iii) adjustments related to the amortization of
intangible assets, (iv) amortization or write-off of debt issuance costs
and write-off of original issue discount and (v) any extraordinary,
unusual or non-recurring items, in each case net of the tax effect
calculated using an assumed effective tax rate. Booz Allen prepares
Adjusted Net Income to eliminate the impact of items, net of taxes, it
does not consider indicative of ongoing operating performance due to
their inherent unusual, extraordinary or non-recurring nature or because
they result from an event of a similar nature.

“Adjusted Diluted EPS” represents diluted EPS calculated using Adjusted
Net Income as opposed to Net Income. Additionally, Adjusted Diluted EPS
does not contemplate any adjustments to net income as required under the
two-class method of calculating EPS as required in accordance with GAAP.

“Free Cash Flow” represents the net cash generated from operating
activities less the impact of purchases of property and equipment.

Booz Allen utilizes and discusses in this release Adjusted Operating
Income, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS
because management uses these measures for business planning purposes,
including managing its business against internal projected results of
operations and measuring its performance. Management views Adjusted
Operating Income, Adjusted EBITDA, Adjusted Net Income, and Adjusted
Diluted EPS as measures of the core operating business, which exclude
the impact of the items detailed in the supplemental exhibits, as these
items are generally not operational in nature. These supplemental
performance measures also provide another basis for comparing period to
period results by excluding potential differences caused by
non-operational and unusual or non-recurring items. Booz Allen also
utilizes and discusses Free Cash Flow in this release because management
uses this measure for business planning purposes, measuring the cash
generating ability of the operating business and measuring liquidity
generally. Booz Allen presents these supplemental measures because it
believes that these measures provide investors and securities analysts
with important supplemental information with which to evaluate Booz
Allen’s performance, long term earnings potential, or liquidity, as
applicable, and to enable them to assess Booz Allen’s performance on the
same basis as management. These supplemental performance measurements
may vary from and may not be comparable to similarly titled measures by
other companies in Booz Allen’s industry. Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free
Cash Flow are not recognized measurements under GAAP and when analyzing
Booz Allen’s performance or liquidity, as applicable, investors should
(i) evaluate each adjustment in our reconciliation of Operating and Net
Income to Adjusted Operating Income, Adjusted EBITDA and Adjusted Net
Income, and cash flows to Free Cash Flows and the explanatory footnotes
regarding those adjustments, (ii) use Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS in
addition to, and not as an alternative to Operating Income, Net Income
or Diluted EPS as a measure of operating results, each as defined under
GAAP, and (iii) use Free Cash Flows, in addition to, and not as an
alternative to, Net Cash Provided by Operating Activities as a measure
of liquidity, each as defined under GAAP. Exhibit 4 includes a
reconciliation of Adjusted Operating Income, Adjusted EBITDA, Adjusted
Net Income, Adjusted Diluted EPS, and Free Cash Flow to the most
directly comparable financial measure calculated and presented in
accordance with GAAP.

No reconciliation of the forecasted range for Adjusted Diluted EPS to
Diluted EPS for fiscal 2013 is included in this release because we are
unable to quantify certain amounts that would be required to be included
in the GAAP measure without unreasonable efforts and we believe such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors.

Forward Looking Statements

Certain statements contained in this press release and in related
comments by our management include “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include information concerning
Booz Allen’s preliminary financial results, financial outlook and
guidance, including forecasted revenue, Diluted EPS, and Adjusted
Diluted EPS, future quarterly dividends, and future improvements in
operating margins, as well as any other statement that does not directly
relate to any historical or current fact. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“will,” “could,” “should,” “forecasts,” “expects,” “intends,” “plans,”
“anticipates,” “projects,” “outlook,” “believes,” “estimates,”
“predicts,” “potential,” “continue,” “preliminary,” or the negative of
these terms or other comparable terminology. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we can give you no assurance these expectations will prove
to have been correct.

These forward-looking statements relate to future events or our future
financial performance and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, levels of activity,
performance or achievements to differ materially from any future
results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.

These risks and other factors include: cost cutting and efficiency
initiatives and other efforts to reduce U.S. government spending,
including automatic sequestration required by the Budget Control Act of
2011 (as amended by the American Taxpayer Relief Act of 2012), which
could reduce or delay funding for orders for services especially in the
current political environment; delayed funding of our contracts due to
delays in the completion of the U.S. government’s budgeting process and
the use of continuing resolutions by the U.S. government to fund its
operations or related changes in the pattern or timing of government
funding and spending (including potential cuts associated with
sequestration or other budgetary cuts made in lieu of sequestration);
current uncertainty around the timing, extent, and nature of
Congressional and other U.S. government action to address budgetary
constraints, the U.S. government’s ability to incur indebtedness in
excess of its current limit and the U.S. deficit; any issue that
compromises our relationships with the U.S. government or damages our
professional reputation; changes in U.S. government spending and mission
priorities that shift expenditures away from agencies or programs that
we support; the size of our addressable markets and the amount of U.S.
government spending on private contractors; failure to comply with
numerous laws and regulations; our ability to compete effectively in the
competitive bidding process and delays caused by competitors’ protests
of major contract awards received by us; the loss of General Services
Administration Multiple Award Schedule Contracts, or GSA schedules, or
our position as prime contractor on Government-wide acquisition contract
vehicles; changes in the mix of our contracts and our ability to
accurately estimate or otherwise recover expenses, time and resources
for our contracts; our ability to generate revenue under certain of our
contracts; our ability to realize the full value of our backlog and the
timing of our receipt of revenue under contracts included in backlog;
changes in estimates used in recognizing revenue; any inability to
attract, train or retain employees with the requisite skills, experience
and security clearances; an inability to hire, assimilate and deploy
enough employees to serve our clients under existing contracts; an
inability to timely and effectively utilize our employees; failure by us
or our employees to obtain and maintain necessary security clearances;
the loss of members of senior management or failure to develop new
leaders; misconduct or other improper activities from our employees or
subcontractors; increased competition from other companies in our
industry; failure to maintain strong relationships with other
contractors; inherent uncertainties and potential adverse developments
in legal or regulatory proceedings, including litigation, audits,
reviews and investigations, which may result in materially adverse
judgments, settlements, withheld payments, penalties or other
unfavorable outcomes including debarment, as well as disputes over the
availability of insurance or indemnification; internal system or service
failures and security breaches, including, but not limited to, those
resulting from external cyber attacks on our network and internal
systems; risks related to changes to our operating structure,
capabilities, or strategy intended to address client needs, grow our
business or respond to market developments; risks associated with new
relationships, clients, capabilities, and service offerings in our U.S.
and international businesses; failure to comply with special U.S.
government laws and regulations relating to our international
operations; risks related to our indebtedness and credit facilities
which contain financial and operating covenants; the adoption by the
U.S. government of new laws, rules and regulations, such as those
relating to organizational conflicts of interest issues; our ability to
realize the expected benefits from our acquisition of the DSES division
of ARINC Incorporated; risks related to future acquisitions; an
inability to utilize existing or future tax benefits, including those
related to stock-based compensation expense, for any reason, including a
change in law; and variable purchasing patterns under U.S. government
GSA schedules, blanket purchase agreements and Indefinite
Delivery/Indefinite Quantity contracts. Additional information
concerning these and other factors can be found in our filings with the
Securities and Exchange Commission (SEC), including our Annual Report on
Form 10-K, filed with the SEC on May 30, 2012.

All forward-looking statements attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the foregoing
cautionary statements. All such statements speak only as of the date
made and, except as required by law, we undertake no obligation to
update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.

Reflects stock-based compensation expense for options for Class A
Common Stock and restricted shares, in each case, issued inconnection
with the Acquisition of our Company by The Carlyle Group (the
Acquisition) under the Officers' Rollover Stock Plan. Alsoreflects
stock-based compensation expense for Equity Incentive Plan Class A
Common Stock options issued in connection with theAcquisition
under the Equity Incentive Plan.

(b)

Reflects amortization of intangible assets resulting from the
Acquisition.

(c)

Reflects debt refinancing costs incurred in connection with the
Recapitalization Transaction consummated on July 31, 2012.

(d)

Nine months ended December 31, 2011 reflects the gain on sale of
our state and local transportation business, net of the associated
taxbenefit of $1.6 million.

(e)

Reflects the release of income tax reserves.

(f)

Reflects tax effect of adjustments at an assumed marginal tax rate
of 40%.

(g)

Excludes an adjustment of approximately $475,000 and $9.0 million
of net earnings for the three and nine months ended December 31,2012,
respectively, associated with the application of the two-class
method for computing diluted earnings per share.

Exhibit 5Booz Allen Hamilton Holding CorporationOperating
Data

As ofDecember 31,

(Amounts in millions)

2012

2011

Backlog (1)

Funded

$

3,152

$

2,971

Unfunded (2)

3,614

3,717

Priced Options (3)

6,156

5,527

Total Backlog

$

12,922

$

12,215

(1)

Backlog presented in the above table includes backlog acquired
from the Company's acquisition of ARINC's Defense SystemsEngineering
and Support (DSES) division made during the three months ended
December 31, 2012. Total backlog acquiredfrom DSES is
approximately $1.53 billion as of December 31, 2012.

(2)

Reflects a reduction by management to the revenue value of orders
for services under two existing single award ID/IQcontracts
the Company has had for several years, based on an established
pattern of funding under these contracts by theU.S.
government.

(3)

Amounts shown reflect 100% of the undiscounted revenue value of all
priced options.

As ofDecember 31,

2012

2011

Book-to-Bill *

0.2

0.6

* Book-to-bill presented excludes the effects of acquisitions
made during the three months ended December 31, 2012. It is calculated
as the change in total backlog during the relevant fiscal quarter
plus the relevant fiscal quarter revenue, all divided
by the relevant fiscal quarter revenue.

As ofDecember 31,

2012

2011

Headcount

Total Headcount

24,791

25,825

Consulting Staff Headcount

22,393

23,255

Three Months EndedDecember 31,

Nine Months EndedDecember 31,

2012

2011

2012

2011

Percentage of Total Revenue by Contract Type

Cost-Reimbursable (4)

58%

54%

57%

54%

Time-and-Materials

27%

31%

28%

31%

Fixed-Price (5)

15%

15%

15%

15%

(4)

Includes both cost-plus-fixed-fee and cost-plus-award fee contracts.

(5)

Includes fixed-price level of effort contracts.

Three MonthsEndedDecember 31,2012

Three Months EndedDecember 31,2011

Days Sales Outstanding **

63

69

** Calculated as total accounts receivable divided by revenue per
day during the relevant fiscal quarter.